US, Iran Halt Attacks, Oil Prices Plunge 5% in Early Trading

Oil prices plummeted by 5% in early Asian trading on Monday as the United States and Iran suspended military attacks, easing fears of an immediate disruption to Middle East crude supplies.

The price drop follows a two-week conflict that pushed Brent crude above $100 per barrel. At the time of writing, Brent crude was trading at $92.04 per barrel, down 5.15%, while U.S. benchmark West Texas Intermediate (WTI) fell 5.39% to $84.76 per barrel.

The sharp decline in prices came after signals from Washington and Tehran that both sides were pausing hostilities to create room for diplomacy. The US announced on Friday that it was temporarily suspending its bombing campaign against Iran, with Mike Waltz, US Ambassador to the United Nations, saying the pause would 'give diplomacy some space.'

Iran also indicated it would halt attacks for as long as the United States refrains from military action. Esmaeil Baghaei, Foreign Ministry spokesperson, described recent talks with an Omani delegation as 'constructive' and said progress had been made.

Analysts caution that the decline in oil prices may be temporary unless tanker traffic through the region recovers significantly. They note that shipping companies remain cautious after freight rates soared during the conflict, with vessel operators still facing elevated security risks despite the temporary halt in hostilities.